Stocks, dollar drop as tariff talk dominates
On tariffs, Trump said he planned to start sending letters informing trading partners of their import levies as soon as Friday, as negotiations to avoid higher US rates entered the final stretch.
European stock markets retreated around midday, also as China said it will impose "anti-dumping" taxes of up to 34.9 percent on cognac and other brandy imported from the European Union starting from Saturday.
Asian stock markets closed out the week mixed.
Oil prices extended losses, with OPEC and the cartel's crude-producing allies expected this weekend to announce a rise to output.
The main focus heading into next week was on Trump's tariff plans.
"We draw ever closer to Wednesday's reciprocal tariff deadline, and thus traders are likely to grow jittery despite the tentative signals of a potential pathway to a deal," noted Joshua Mahony, chief market analyst at Rostro trading group.
Governments around the world have fought to hammer out tariff deals with Washington after Trump unveiled a blitz of levies in early April.
He and his top officials have said several were in the pipeline, but only Britain and Vietnam have signed pacts.
China has agreed to a framework for it and the United States to slash tit-for-tat tolls and ship certain products.
The prospect that trading partners from Japan and South Korea to India and Taiwan could be hit with stiff tariffs fuelled fresh worries about the global economy.
Uncertainty leading up to next week's cut-off tempered the positive lead from another record Thursday on Wall Street, where a forecast-busting US jobs report soothed worries about the world's top economy.
It dented the prospect of the Federal Reserve cutting interest rates at its July policy meeting, with bets now on two reductions before the end of the year -- the first likely in September.
However, analysts suggested that all was not what it seemed, pointing to softness in the private sector.
"We think that private-sector hiring has stalled, and we may see sporadic layoffs in some industries in the coming months," warned analysts at Japanese financial group MUFG.
"Despite the unemployment rate having fallen... the flow of potential workers that remained out of the labour force rose sharply in June, further highlighting the weak hiring environment.
"We continue to view labour demand as being fundamentally weak relative to the past several years," they added.
Wall Street will be closed on Friday for the US Independence Day holiday.
Key figures at around 1045 GMT
London - FTSE 100: DOWN 0.3 percent at 8,797.25 points
Paris - CAC 40: DOWN 0.8 percent at 7,690.02
Frankfurt - DAX: DOWN 0.6 percent at 23,784.66
Tokyo - Nikkei 225: UP 0.1 percent at 39,810.88 (close)
Hong Kong - Hang Seng Index: DOWN 0.6 percent at 23,916.06 (close)
Shanghai - Composite: UP 0.3 percent at 3,472.32 (close)
New York - S&P 500: UP 0.8 percent at 6,279.35 (close)
Euro/dollar: UP at $1.1778 from $1.1755 on Thursday
Pound/dollar: UP at $1.3651 from $1.3642
Dollar/yen: DOWN at 144.37 yen from 145.06 yen
Euro/pound: UP at 86.28 pence from 86.14 pence
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Euronews
3 hours ago
- Euronews
Donald Trump says new tariffs of up to 70% will begin 1 August
US President Donald Trump is expected to begin formally notifying key US trading partners of a sweeping new tariff regime as early as Friday, according to media reports. The duties, set to take effect on 1 August, could see some countries face levies of up to 70% on exports to the United States. Speaking to reporters ahead of the Independence Day holiday, Trump said around "10 or 12" letters would be issued immediately, with more to follow over the coming days. "By the ninth they'll be fully covered," he stated, referring to a 9 July deadline he previously set for reaching deals that could avert the higher tariffs. Trump's approach, widely seen as part of his America First trade agenda, leaves little room for negotiation. "They'll range in value from maybe 60 or 70% tariffs to 10 and 20% tariffs," he added, making clear that the scale of the new charges would vary by country. The United States is currently in sensitive talks with several economies, including South Korea, Indonesia, Switzerland and the European Union. The discussions are understood to be at a critical stage, where delicate issues are being tackled. The White House first announced the higher "reciprocal" tariffs on 2 April, but delayed full implementation for 90 days to allow time for talks. During the interim, a 10% rate was applied. Should the full slate of tariffs be enacted next week, Bloomberg Economics estimates the average duty on US imports could rise to around 20%, up sharply from the pre-Trump average of roughly 3%. Such an increase would represent a significant escalation from the initial framework unveiled in April, where proposed tariffs ranged from 10 to 50%. The president has not yet detailed which countries or goods would fall under the highest rate brackets. Trump said the measures would begin generating revenue from next month. "Countries would start to pay on 1 August. The money will start coming into the United States on 1 August," he said. While tariffs are officially paid by importers or their intermediaries, the costs are often passed down to consumers or absorbed by businesses through reduced profit margins. According to local media, economists have cautioned that the delayed impact of tariffs could complicate efforts by the Federal Reserve to manage inflation. Some Fed officials are reportedly hesitant to cut interest rates while the full economic effects of the trade measures remain unclear. The new tariffs have rattled global markets, with shares in Asia and Europe declining and the dollar weakening. US markets remained closed on Thursday for the Fourth of July holiday.
France 24
5 hours ago
- France 24
California firefighres battle biggest blaze of year
Skip to main content Home Shows Live Newsfeed France Africa Middle East Americas Europe Asia-Pacific 01:05
Local France
6 hours ago
- Local France
France's emission cuts tipped to slow again in 2025
The estimated reduction of less than one percent extends a slowdown seen in recent years, said Citepa, a non-profit organisation tasked by France's ecology ministry with tallying the country's greenhouse gas inventory. France, a major economy seen as a leader in transitioning to a low-carbon future, slashed its output of planet-heating emissions by 6.8 percent in 2023. But the rate of decline slowed sharply to 1.8 percent in 2024 and is tipped to slip even further in 2025 to just 0.8 percent, said Citepa's latest progress report for the ministry. "This slight decrease in greenhouse gas emissions would confirm the slowdown in momentum observed in recent years," it said. Advertisement France's current emissions reduction target for 2030 is at least 40 percent compared to 1990 levels, but a plan under development proposes raising this goal to 50 percent. To achieve this, France needs to cut emissions by around five percent each year between 2022 and 2030 - well above the current pace. France is far from alone in Europe, with Germany and Britain also struggling to sustain the momentum after posting impressive cuts in recent years. Major polluters elsewhere are also stalling. The United States only managed a 0.2 percent reduction in 2024, even before President Donald Trump took office promising to unwind climate protections and drill for more oil and gas. Cipeta said France's first quarter emissions for 2025 actually rose slightly, due in part to higher gas and electricity use for heating school and residential buildings. The sharp drops in energy emissions seen over the past two years were forecast to slow considerably in 2025, it added. "The use of nuclear power should stabilise in the second half of 2025, remaining at a historically high level," Cipeta said. "In addition, as the use of fossil fuels is already very low, it should stabilise without allowing the gains observed in the past." The slowdown comes as nations face pressure to commit new climate targets in line with international efforts to keep global warming to 1.5 degrees Celsius above preindustrial levels. On Wednesday, the 27-nation European Union unveiled its long-delayed goal of cutting emissions by 90 percent by 2040 compared to 1990 levels - but with contested new flexibilities built in. EU emissions fell by 8.3 percent in 2023 compared to 2022, and are now 37 percent below 1990 levels.
